The Meldrum Co. expects to sell 3,000 units, 15 percent, of a new product. The variable cost per unit is $8, 5 percent; annual fixed costs are $12,500, 5 percent; annual depreciation is $4,000; and the sale price is $18 a unit, 2 percent. What is the amount of the fixed cost per unit under the pessimistic scenario?

Multiple Choice

• $5.35

• $5.15

• $4.17

• $6.02

• $4.66